16. A bond with 5 years remaining until maturity is currently trading for 102 per 100 of par value. The bond offers a 6% coupon rate with interest paid semiannually. The bond is puttable in 3 years with a put price of 101. 1). What is the bond's annual yield-to-maturity? (4 points) ii). What is the bond's annual yield-to-worst? (5 points) 17. You are given the following two investment opportunities: Bond A Bond B Annual Coupon Rate 9% 12% Coupon Payment Frequency Semiannually Annual Years to maturity 6 years 5 years Price (per 100 of par value) 95 105 Assuming you are a rational investor that always prefer a high yield over a lower yield, which bond would you choose to invest in? Use calculations to justify your choice. Guesses without calculation justifications will receive zero point. (10 points) 16. A bond with 5 years remaining until maturity is currently trading for 102 per 100 of par value. The bond offers a 6% coupon rate with interest paid semiannually. The bond is puttable in 3 years with a put price of 101. 1). What is the bond's annual yield-to-maturity? (4 points) ii). What is the bond's annual yield-to-worst? (5 points) 17. You are given the following two investment opportunities: Bond A Bond B Annual Coupon Rate 9% 12% Coupon Payment Frequency Semiannually Annual Years to maturity 6 years 5 years Price (per 100 of par value) 95 105 Assuming you are a rational investor that always prefer a high yield over a lower yield, which bond would you choose to invest in? Use calculations to justify your choice. Guesses without calculation justifications will receive zero point. (10 points)